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Ethics vital for asset managers: CFA Institute

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By Reporter
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2 minute read

The high-profile investment scandals arising from the global financial crisis demonstrate the importance of Australian asset managers making a solid commitment to high ethical standards, says the CFA Institute.

CFA Society vice president Anthony Serhan said the CFA Institute is “calling on more Australian asset managers to follow the lead of their global peers and raise the bar of conduct”. 

The CFA Investor Trust Study 2013, conducted across the UK, Hong Kong, Canada and Australia, showed respondents considered being able to trust an investment manager to act in their best interests as the most important factor in making a hiring decision. 

Mr Serhan argued a change in ethical behaviour needs to begin at the highest level of investment management organisations and “requires a consistent, company-wide approach to keeping investor protection and the professional conduct of managers as top priorities”. 

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“If leaders within an organisation can demonstrate a real commitment to ethics, managers and employees will follow that example,” he said. 

“The starting point is a strong code of ethics that encompasses fundamental ethical principles.”

Mr Serhan said the CFA Institute has developed the Asset Manager Code of Professional Conduct to help asset managers establish a “stronger ethical culture in the financial services industry”. 

The code requires managers to act for the benefit of clients; act in a professional and ethical manner at all times and with independence and integrity; demonstrate skill, competence and diligence; communicate with clients in a timely and accurate manner; and uphold the rules governing capital markets. 

Mr Serhan said currently more than 950 asset management firms, investment firms, private banks and hedge funds across 30 countries have adopted the code. 

 

Ethics vital for asset managers: CFA Institute

The high-profile investment scandals arising from the global financial crisis demonstrate the importance of Australian asset managers making a solid commitment to high ethical standards, says the CFA Institute.

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